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Why is unpaid household work not added to GDP?

Answer and explanation

Correct answer: Because it has no recorded market value

GDP is designed primarily to record final goods and services that have observable monetary values through market transactions. Unpaid cooking, cleaning, or caregiving may create real value and improve household welfare, but no sale or payment is recorded when the work is done within the household. Option B is correct. The work is not useless, foreign, or a capital good; it is a non-market service that is difficult to value consistently.

Related tags

Unpaid Household WorkNon-Market ActivityGdp ExclusionGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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